TAIPEI (Taiwan News) — Taiwan announced a nearly six percent increase in its 2025 defense budget on Tuesday (Aug. 6).

To strengthen defense, a new high of NT$647 billion (US$19.80 billion) out of a total budget of NT$3.13 trillion has been approved for next year, per the Presidential Office. “We are determined to enhance our self-defense capabilities and strengthen cooperation with democratic partners to ensure peace and prosperity,” President Lai Ching-te (賴清德) said at a Cabinet briefing on Tuesday.

The large boost to defense will allow Taiwan to continue developing indigenous weapons and purchase arms from the US amid the growing Chinese military threat in the region.  

Despite the larger defense budget, social welfare remained the priority. Lai said the overall budget for long-term care has reached a new high, NT$92.7 billion, to address Taiwan’s super-aged society. Additionally, a national childcare plan will receive NT$4.1 billion.

The president said Taiwan's domestic and global challenges are “increasingly complex.” Issues such as climate change and the surge of AI technology are not problems easily solved with a single approach. Taiwan must strive for balanced development, Lai said.